The Egyptian trade ministry said on Saturday it was extending a ban on rice exports until October to keep prices down on the domestic market. "The decision is intended to preserve the stability of prices in the local market," state news agency MENA quoted Trade and Industry Minister Rachid Mohamed Rachid as saying.
The ban had been due to expire in April. The ministry had previously said it would extend the ban beyond April, but had not set another expiry date. Exports of rice by companies which also import the commodity on behalf of the state for distribution as part of food subsidies would still be allowed, the ministry said. The companies are allowed to export only the same amount as they import.
Companies would also be allowed to export any surplus rice after meeting domestic demand for a fee of 1,000 Egyptian pounds ($178) per tonne, MENA quoted Rachid as saying. The government initially imposed the ban from March until October last year after local rice prices rose sharply in response to increases on international markets.
Rice prices surged to a record of $1,080 a tonne in May last year, helping to push up inflation in Egypt, which has since cooled. Egypt produces about 4.6 million tonnes of white rice a year and domestic consumption is usually 3.2 million tonnes, leaving a surplus of 1.4 million tonnes for export.
Comments
Comments are closed.